Microsoft Word 2007 ichrie conference Proceedings Final-Final 06-06-07. doc

 
2007 Annual International CHRIE Conference & Exposition 
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destination or regional defined areas would reduce “leakage” and increase an industry’s effects on the local 
economic impact toward the economy of a defined region.
Economic Impact Assessment (EIA) 
Both primary and secondary data can be used in conjunction with an economic impact assessment such as 
Input-Output (I/O) model to determine the economic impacts of a tourism activity. Initial direct expenditures of 
target population in a defined area (e.g., a city, a county, a region, a state, etc.) by nonresidents constitute the direct 
economic effects on the local economy. An input-output model can describe the economic importance of an activity 
in terms of changes in total industry outputs, value added, labor income, and employment (Chen, Hunt and Ditton, 
2003; Chen, 2006b). 
Total economic impact is the sum of direct, indirect, and induced effects of visitor spending. The 
Input/Output (I/O) model calculates multipliers including direct, indirect, and induced effects. The use of multipliers 
is to estimate economic impacts resulting from a commodity or an industry changing in final demand. In order to 
estimate economic effects caused by a new industry or an activity in final demand, multipliers are used as the 
magnitude to weigh the leakages and linkages among various industrial and tourism sectors of the local economy. 
Lower leakages to economies are assumed to be represented by higher value added multipliers.